A week after Donald Trump was re-elected as US President, on November 12, Musk was appointed to an important position in the new administration, opening a special relationship between him and President Trump.
The world’s richest man’s fortune also increased by more than $80 billion.
From a supporter of the Democratic Party, Musk switched to supporting Republican candidate Trump, which not only changed his political views but also brought significant financial benefits and power.
“King Trader” Musk not only profits from smart investment strategies, but also knows how to take advantage of political connections to promote his businesses.
Public support for the Democratic Party
Prior to the 2024 US election, Musk had been known as an outspoken supporter of the Democratic Party. During the 2016 presidential election, Musk announced his support for Hillary Clinton, the Democratic candidate, and was a major donor to Clinton’s campaign in California.
According to Bloomberg , Musk was also on the list of major donors to Clinton’s campaign, demonstrating his commitment to the Democratic Party at that time.
In the 2020 election, Musk publicly voted for candidate Joe Biden, despite previously expressing disagreement with some Democratic Party policies.
Musk not only supports Democratic candidates but also funds campaigns and organizations related to the party.
He is also known as one of the people promoting initiatives on climate change, renewable energy and clean technology, issues that are of particular concern to the Democratic Party and are regularly included on the agenda.
During President Barack Obama’s tenure, Musk and Tesla benefited from policies that encouraged clean energy and electric vehicle development.
The Obama administration has pushed subsidies and incentives for companies like Tesla, helping Musk build and grow Tesla as one of the leaders in the electric car market.
Tense relationship with Mr. Trump
Musk’s relationship with Donald Trump has not always been smooth. Throughout Trump’s tenure, Musk has criticized some of the administration’s policies, especially on the environment.
One of the notable events was when President Trump decided to withdraw the US from the Paris Agreement on climate change in 2017.
In a show of protest, Musk quit the Trump administration’s advisory councils, increasing tension between the two.
Additionally, in 2022, Trump attacked Musk on social media, claiming that Musk had gone to the White House to ask for subsidies for Tesla projects and even mocked him. Musk responded by saying that Trump was too old to run in 2024.
Overall, in the lead-up to 2020, Musk was a strong supporter of the Democratic Party, both in political action and in funding.
The billionaire’s support for the Democratic Party reflects his views on social, environmental and technology issues, and also shows how he has used his relationship with the government to promote the growth of his own companies like Tesla.
Shifting support to the Republican Party
Things began to change when Mr. Biden took office in 2021. The president’s policies, especially measures related to the United Auto Workers (UAW) union and new regulations on tech companies, made Musk and many other investors uncomfortable.
Musk criticized the Biden administration, saying new regulations make it difficult for technology and electric car companies like Tesla.
One of Musk’s more prominent statements was that he suggested that Biden was a “puppet” of the UAW, because of what Musk considered unreasonable demands for workers’ wages and benefits.
With this dissatisfaction, Musk began to shift to supporting candidate Trump in the 2024 election campaign.
He believes that Mr. Trump, as a businessman, will create a favorable business environment for technology companies and reduce regulations that hinder the development of Tesla and SpaceX.
Musk has supported Trump not only verbally but also financially. Musk has reportedly donated at least $130 million to Republican campaigns and supported election campaigns in swing states.
He also used social network X, which he acquired in 2022, to continuously show support for Trump, while regularly spreading false information about Vice President Kamala Harris as well as issues such as immigration and voter fraud.
Trump did not spare any compliments for Musk. While campaigning in York, Pennsylvania, he praised the Tesla CEO’s innovative thinking and intelligence, suggesting he could be a key adviser or even join his cabinet if he were re-elected.
Selling kings profits the whole world
Musk reaped clear financial benefits from Trump’s victory. Tesla shares soared overnight, pushing the company’s market value to more than $1 trillion and adding tens of billions of dollars to Musk’s net worth.
While spending just over 100 million USD, the Tesla boss has earned a huge profit, clearly proving the saying “nothing is more profitable than trading kings”.
But Musk’s gains extend beyond his personal fortune. His companies, including Tesla, SpaceX, and Neuralink, are all dependent on government regulation and policy.
In particular, Tesla will need waivers from agencies like the US National Highway Traffic Safety Administration (NHTSA) to produce fully self-driving cars by 2026.
Musk has also criticized the U.S. Food and Drug Administration’s (FDA) approval process for Neuralink and may use his relationship with the Trump administration to expedite those processes.
In addition, according to CNBC, Musk’s companies are also involved in a series of investigations and lawsuits from federal agencies for alleged violations of securities laws, workplace safety, labor and civil rights violations, environmental violations, consumer fraud, vehicle safety, etc.
Given the executive branch’s overwhelming power over federal regulators, Musk may be hoping the agencies will end some or all of the 19 ongoing investigations and lawsuits into Tesla, SpaceX, and X.
With his appointment to head the Department of Government Efficiency, Musk can continue to use his political influence to change regulations and cut down on government bureaucracies that he considers “bloated and costly.”
This will help Musk continue to expand his power and influence in politics and the tech industry.
Musk has shown himself to be a skilled “kingmaker” by skillfully exploiting his relationship with the ruling party to gain both financial and power benefits.
From a supporter of the Democratic Party, he quickly changed his stance when he saw greater opportunities under a Republican administration.
With the “king-trading” strategy, Musk not only consolidated his business empire but also continued to expand his political influence, a decisive factor in creating power and wealth.
(Synthetic)
